Solana’s planned protocol upgrades are important for the network’s long-term health but could deal a blow to validators’ earnings, according to asset manager VanEck.
In March, Solana’s validators will vote on two proposed upgrades — known as Solana Improvement Documents (SIMDs) — to the blockchain protocol designed to ensure rewards for stakers and adjust the inflation rate for the network’s native SOL ($124.33) (SOL) token.
Both proposals have generated “significant controversy” because they stand to slash validator revenues by as much as 95%, potentially imperiling smaller operators, VanEck digital asset research head Matthew Sigel said in a March 4 X post.
“While these changes may reduce staking rewards, we believe lowering inflation is a worthy goal that strengthens Solana’s long-term sustainability,” Sigel said.
SOL’s staked supply has risen since 2023. Source:
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